Wednesday, 3 July 2013

GOVERNMENT TO EMPOWER SMALL & MEDIUM ENTERPROSES TO BECOME TOURIST DESTINATION OPERATORS



The problem faced by smell and medium en­terprises (SME) recently is very heavy as competition grows tighter due to flow of imported products from China, Japan and Korea. This situation is affected by high interest of consumers in buying these products on reason of good quality and cheaper prices. This phenomenon highly convinces consumers that im­ported products are better in terms of quality, price, and accessibility.

So, the government should participate in the development of SME in Indonesia. Concerning the problem faced by UKM. I Wayan Dipta, Deputy Minister of Micro, Small & Medium Enterprise Re­search Assessment of the Ministry of Cooperatives and Small and Medium Enterprises (SME), on Monday (2/4/2013) stated that the government should devel­op SME considering that this sector is sustainable in time of crisis.

Wayan explained that the Ministry of Coop­eratives and SME is currently facilitating six cooperatives in six provinces to become agro-eco-tourism operators. Six provinces who received facility for in­creasing operation of agro-eco-tourism destinations are East Java, Bali, Central Java, North Sulawesi, Central Sulawesi, and East Kalimantan. He explained that increase of the role of cooperatives in tourist sites is part of tourism industry development through Community-Based Tourism (CBT) approach. This is for increasing business capacity of cooperatives in agro-eco-tourism sector which will be developed in all provinces having such potency.

Wayan explained that Law No, 10/2008 on Tourism explicitly mandated the central and region­al governments to give attention and policy support to SME so they could play a role in tourism sector. This can be done by, among other things, policy on development of Cooperatives and SME so that SME can play a role as tourist industry operators. To real­ize this, the role of cooperatives has been optimized since 2009, started with assessment of agro-eco-tourism management model.

SME development is not only the responsibil­ity of the government. People should have started to develop their potency in the form of entrepreneurship supported by all parties, such as the banks, for the advancement of their economies. This is important so people will not depend on job-seeking, but will create work opportunities. Indonesia's economic growth must be benefited by young entrepreneurs so that In­donesia will become an advanced country by 2025. Economic improvement attracts many foreign invest­ments.

SME’s a competitiveness must also be improved. Competitiveness is determined by capability of human resources in producing product quality, price, design, and by environmental factor which is a conducive factor that makes SME able to enter tight competition. Competitors of Indonesian SME are imported products, such as new or second-hand clothing which receives an increasing number of responses from the public due to their quality, reasonable prices, and attractive designs.


Business News - February 08,2013

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